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Financial Consultants, Investment Advisors, Bangkok, Thailand, Asia


The Global Investor, our financial newsletter
 June 2006 - Issue 54 Previous Issues  

The Global Investor is a monthly newsletter that covers global investment opportunities and insurance for the expatriate community. This monthly newsletter's goal is to inform the reader of what can and cannot be done in the investment arena when living and working in a foreign country. Whether it's personal pension plans or disability insurance to protect your income - Global Investments has the expertise to handle all the expatriate investors' needs.

UK PENSION TRANSFERS
Opportunity Knocks

'A' Day - 6th April 2006
How Secure is Your Pension?
The Global Solution
Key Features
SIPPs For Dummies

Recent changes in pension legislation (see below) has opened up a vast market for new and existing pension assets.

In February, one of the only remaining providers still accepting Pension Transfer business from Offshore Intermediaries announced it would cease to do so from 1st April 2006.

This month we cover some of the changes that have occurred and the increased opportunities now available.


'A' Day - 6th April 2006
A-Day, Thursday, 6th April 2006 , heralded the biggest shake up of UK pensions in more than a decade following reports that massive pensions shortfall coupled with increasing life expectancy meant that many company schemes are underfunded and some were even being wound up.

The main purpose of the new legislation is to make pension saving much less complex .

The new rules equally apply to Money Purchase/With-Profit schemes, Personal Pensions, AVCs, FSAVCs and Company Pension schemes.

From the above date, an individual can be a member of a company pension scheme and also contribute to a personal pension at the same time. They will also be able to draw their pension and carry on working.

How Secure is Your Pension?
"Cash shortfall in final salary pension funds across the UK amounts to a £100bn."
 Pension Protection Fund's chairman Lawrence Churchill (16th December, 2005)

HSBC, Britain's biggest bank, yesterday halved its pension fund deficit with a £1 billion cash injection - the largest single payment made by a UK company into a retirement fund. Other Companies with large deficits include GlaxoSmithKline, BP and Lloyds TSB. (The Times, 24th December 2005).

The upshot is that many employees putting money aside for their old age may well find that their retirement income falls far short of what they had hoped.

The Global Solution
Global Investments has formed a strategic alliance with a UK FSA regulated Pension Specialist providing a unique service allowing expatriates to transfer their pensions into a Self Invested Pension Plan (SIPP) and to purchase an offshore portfolio bond. Global, through this affiliation, has an exclusive arrangement with a major Isle of Man based Offshore Life Company and a UK SIPP provider.

The substantial benefits to you are as follows:
  • Invest your pension into any fund accepted by the offshore portfolio bond.
  • Receive expertise in a niche market.
  • Leave all administration and regulatory requirements to our UK authorised partner.
  • We can manage your assets for a longer period of time, as you do not now have to buy an annuity at age 75.

Your money is already invested, so you are merely transferring it to access a wider choice of investments offering potentially greater returns.

Initially, all that is required is for you to sign a mandate allowing us to contact your pension administrator to assess the feasibility of the pension transfer.

 Key Sales Features
The Benefits of SIPPs:

  • Complete control of your pension assets
  • No risk from company scheme shortfalls
  • Investment decisions are yours/ours
  • You decide what risk, if any
  • Wider range of possible investments
  • Greater benefits for Spouse and Dependents
  • Usual Benefits of investing offshore provided by life company portfolio bond
  • Do not have to buy an annuity

SIPPs For Dummies
What is a SIPP?
Introduced in 1991, a SIPP is a pension contract in your own name which gives you more control over your pension investments. It can be set up with funds transferred from existing pension arrangements.

Investment Choice
From April 2006, a SIPP can invest in a much wider range of assets, such as cash deposits, quoted equities, collective investments and commercial property. Investment growth is free of UK tax on non- dividend investment income. Rent is received tax-free and bank account interest is paid gross. Also there is no CGT to pay when an investment is sold by the SIPP.

Not irreversible
By taking out a SIPP you are not making a once and for all decision. If at some point you decide that a SIPP is no longer appropriate you can instruct the provider to sell the assets and transfer your fund as cash to another pension scheme.

Retirement & Death Benefits
The new rules give you more flexibility over how and when you draw your retirement benefits. Notably, you will no longer be required to purchase an annuity at 75. Instead, you can continue to draw your income directly from the fund using Alternatively Secured Income (ASP). A new concept, known as the "family pension" will see pension funds cascading down generations of families.

Please contact Global Investments for more information
on Tel. (+66-2) 662-2009 or e-mail at info@globalinvestments.net.

 
 
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